Seychelles: Restructuring On the Cards for BMIO Bank, Announces Central Bank
By Hajira Amla
Victoria — The Bank of Muscat International Offshore (BMIO) in Seychelles is facing re-structuring by the Central Bank of Seychelles (CBS).
The reserve bank took control of the locally-registered BMIO in November following the breakdown of the latter's foreign correspondent banking relationship the month before, and announced the news of BMIO's re-organisation in a press statement issued on Friday.
"CBS has throughout been working closely with the Financial Intelligence Unit (FIU) in an attempt to address the issues faced by BMIO," read the statement. "Following negotiations, CBS has been successful in re-establishing correspondent banking relationship for BMIO which has allowed for some transfers to be effected thus far."
BMIO's lack of banking representatives overseas had left the bank unable to process outward foreign currency transfers for its clientele, with clients abroad unable to perform transfers or deposits.
CBS goes on to say that the restructuring of BMIO under Schedule 4 of the Financial Institutions Act 2004 is necessary "in light of tighter requirements on risk management internationally."
"During the reorganisation, CBS will continue to have full management control over BMIO," the statement added.
CBS did not elaborate on what the re-structuring would entail or when they expected the bank to resume its normal operations.
Under Schedule 4 of the Act, the reserve bank must as soon as possible draw up a reorganisation plan for the local financial institution, while still taking the interests of all persons concerned with the financial institution into account at all times.
According to the Act, CBS as the reorganizing agent may also "provide for the removal of any director, manager, officer, employee or agent of the financial institution who in the opinion of the Central Bank was responsible for or contributed to the circumstances which led to the seizure of the institution".
BMI Offshore was registered in Seychelles in July 2008 as a joint venture between BMI Bank in Bahrain and Seychelles-based bank Nouvobanq, each with 50 percent shareholdings.
The bank is based in the 'Capital City' building on Independence Avenue in central Victoria, the capital of the 115-island archipelago.
In a previous statement, the reserve bank reassured the bank's clients that the issue was "purely of an operational nature", adding that BMIO was still financially sound and "not threatened" by its lack of correspondent bank.
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Should seychellois tax payers bailed out the subsidiaries of a foteigf gangantuan institution,which is based in seychelles for only a few short years,thus has literally not contribute anything to our economy?pl thinks yes!
ReplyDeleteIT might be true In conducting highly technical monetary etc..policy, government may have some i.dependency,but when putting people resource at high risk,transparency and accountabiliity is high needed ,if not a must.The people do not know the specifics,they are left in the dark.
It true,that foreign governments had bailed out foreign banks subsidiaries....e.g US government bailed out Barclay banks based in the USA,.It did so because US government agreed that Barclay Banks contributed enormously to USA economy,businesssectors. During their DECADesPRESENT on U S soil.BUT also because they were one of single larger purchaser of US government DEBT.US government intervened so that its DEBT MARKET do not collapse and to prevent broader conseauences to US economy and Society.
Furthermore,Did FIU can guarantee tax payers that this foreign bank has conomic assets and Business activities the demise of which would be lead to contagio in the local financial system,that a rescue is imperatively necessary? Can FIU/PL guarantee Seychellois that they will get their money back with a high profit?like IMF,you bailed out to in return make a profit on your leading.
Why does its parent bank in Muscat pay the bill i.stead of seychellois tax payers,PL?No money to bail out our National Airline,but tax payers money to prescreen a foreign bank shorty based in seychelles,yes,Pl.
Should at least your one party system Assembly,teemed party members for window dressing maybe give their slavish consent,to make it all look transparent,legitimate,highly important,etc..with Gundog Pierre,to confirmed pl decision by giving his yes vote to pl secretive act.
Jeanne darc
Totally right jeanne,but missed one little detail,Gill would have his mouth zipped,donfirmi.g that agrees with pl,like pierre,and his officially hating enemy,but deep in his heart an idol.
ReplyDeletestructural REFROMS MEANS BAILING OUT TOO,CBS.What would be the true cost?Where would the money come from,the country is striving to stay afloat ,we bankrupt and could not pay back our own debts?Bail out ,if we listen to Pl would be appear to be a successful investment,however, adjusting for level of risks and Opportunity Cost of money in such a crumbling institution drastically alters the picture.
ReplyDeleteAnd the other point is bail out does not necessarily avoid an insolvency process.How you bail out a bank when government has multi-millions debts?Is that Pl wandnumbus` bill?
Instead of clooecting money from foreign businesses that have benfit from exemples here and there,Laporte reduce custom duty for them and would probably rise prices or tax on Seychellois to pay government waste and Imf debts.No reduction on ministers salary,closing of Ambassies,replacememnt of foreigners in our institutions which is costing tax payers a fortune and their present illegal.Close Ambassy in North Korea,Cuba,Zimbabwe,tachikistan,Malawi.swaziland,somali etc-- Pl it is costly and useless.
ReplyDeleteAfter 5 years of incompetency--should laporte demission?This guy is not decreasing our deb or getting us out of recccsion t but increasing it--65 percent of our GDP and prolonging the pl mess. .
ReplyDeleteLaport~E~conomy is hoocoodanode.
ReplyDeleteTax payers money should not be use in any way to bail out foreign companies which do not produce return to this country.Fial banks,companies should be left to fail.Laporte should follow economic principles and let the market do fix things it self instead otstealling tax payers money to bial out an Arab bank,which has its parent frim in MUSCAT ,the later should do that, not Seychellois tax payers, already improvsih,with an astronomic debt,a collapse economy,and with no light out of the dark tunnel Laporte and pl got us in.
ReplyDeleteUse tax payers money to better Seychellois lives not to bail out Arab bank.
New chinese ambassadkr,and pl re start its racitic clGisication c call Seychellois of chinese origine.chine like to have ethnic groups in seychelles,hoping use zhem as stoogeto support chines policies and divide seychellois.and pl racists who like foreigners more than seychellois join in to promote the clasification of seychelles.is zhis musz stop pl racists.there ia only seychellois no ethnic group in seychelles to p clasifyinf seychellois. Pl.we dono have cSt sytem in seychelles.
ReplyDelete